Wednesday, October 07, 2009

Investment opportunities are rare in the Gaza Strip. So when Nabila Ghabin saw one last year, she pawned her car and jewelry and put $12,000 into a network of tunnels that brought in supplies smuggled from Egypt.

She was one of about 4,000 Gazans who gave cash to middlemen and tunnel operators in 2008 as Israel blocked the overland passage of goods. Then Israeli warplanes bombed the tunnels before and during the Dec. 27 to Jan. 18 Gaza offensive and the investments collapsed.

Now investors, who lost as much as $500 million, want their money back from Hamas, which runs Gaza. Hamas Economics Minister Ziad Zaza says about 200 people were taken into custody in connection with the tunnel investments; most have been released. Hamas is offering a partial repayment of 16.5 cents on the dollar using money recovered from Ihab al-Kurd, the biggest tunnel operator.

The imbroglio over the 800 to 1,000 tunnels has deepened Hamas’s decline in public opinion in Gaza and highlights the Wild West nature of the underground economy that supports this jammed enclave of 1.4 million people.

“When you compare the U.S. economy with ours and see how dependent we have become on the tunnels, I assure you that our scandal is much worse than Madoff,” said Omar Shaban, director of Pal-Think, an economic research institute in Gaza City, speaking of New York financier Bernard Madoff’s $65-billion Ponzi scheme.

Top Hamas leader Ismail Haniya has not commented publicly on the losses to tunnel investors.

“There is no transparency, no public records, no regulators, none of the mechanisms that would let you trace what happened to all the money that people invested in the tunnels,” said Samir Abdullah, the Palestinian Authority’s former planning minister. “The smugglers provide essential revenue for Hamas.”

Hamas, classified by the U.S. and the European Union as a terrorist organization, isn’t offering enough to cover losses, said Ghabin, 43, whose husband is blind and who has five children. She blames Hamas for encouraging the investments.

“The imam told us that we wouldn’t regret joining this blessed business,” she said in her apartment in an unfinished 12-story high-rise overlooking the Mediterraneanas her husband played the lute. “This happened in mosques all over Gaza.”

“You can feel the frustration because thousands of families lost their money and they hold Hamas responsible,” Pal-Think’s Shaban said.

Ghabin said her imam in Gaza City recommended that worshippers invest in the tunnels, saying he was acting under instructions from the Hamas Ministry of Religious Affairs. Her daughter was pitched by an imam at the al-Bureij refugee camp, where she lives. Officials at the ministry declined to comment.

French children's magazine Youpi published this in its latest edition. The translation is "We call these 197 countries state...

Hasbys!

Elder of Ziyon - حـكـيـم صـهـيـون

This blog may be a labor of love for me, but it takes a lot of effort, time and money. For over 12 years and over 25,000 articles I have been providing accurate, original news that would have remained unnoticed. I've written hundreds of scoops and sometimes my reporting ends up making a real difference. I appreciate any donations you can give to keep this blog going.

Compliments

Omri: "Elder is one of the best established and most respected members of the jblogosphere..."Atheist Jew:"Elder of Ziyon probably had the greatest impression on me..."Soccer Dad: "He undertakes the important task of making sure that his readers learn from history."AbbaGav: "A truly exceptional blog..."Judeopundit: "[A] venerable blog-pioneer and beloved patriarchal figure...his blog is indispensable."Oleh Musings: "The most comprehensive Zionist blog I have seen."Carl in Jerusalem: "...probably the most under-recognized blog in the JBlogsphere as far as I am concerned."Aussie Dave: "King of the auto-translation."The Israel Situation:The Elder manages to write so many great, investigative posts that I am often looking to him for important news on the PalArab (his term for Palestinian Arab) side of things."Tikun Olam: "Either you are carelessly ignorant or a willful liar and distorter of the truth. Either way, it makes you one mean SOB."Mondoweiss commenter: "For virulent pro-Zionism (and plain straightforward lies of course) there is nothing much to beat it."Didi Remez: "Leading wingnut"

feed

counter

Disclaimer

The opinions expressed by those providing comments on this website are theirs alone, and do not necessarily reflect the opinions of Elder of Ziyon. EoZ is not responsible for the content of the comments.

You are legally liable for the content of your comments that you submit to this site.

By submitting a comment to this website, you warrant that we are not responsible, or liable of any of the content posted by you and you agree to indemnify us from any and all claims and liabilities (including legal fees) which could arise from your comments submitted to the site.